Figure 4-21 -Which price in Figure 4-21 is equilibrium? A) P₁ B) P₂ C) P₃

Question

Quizplus · Accepted Answer

In a market, equilibrium occurs at the point where the quantity demanded equals the quantity supplied. In Figure 4-21, this occurs at the intersection of the demand curve (D) and the supply curve (S) labeled P₂. This is the only point where the market clears and there is no excess supply or demand. Therefore, option B is the correct answer.

Figure 4-21 -Which Price in Figure 4-21 Is Equilibrium